Slamming

Slamming is the illegal practice of changing a consumer’s
telephone service without permission. Before a telephone
company can place an order to switch the telephone service
of a customer, the company must have the agreement of
the customer. When a customer agrees to switch long
distance service, the long distance carrier must obtain
the customer’s agreement and authorization to
switch using one of the following methods:

A written or electronic Letter of Agency (LOA)
from the customer. Any written or electronic LOA used
to confirm a telemarketing order must include: (1)
the subscriber's billing name and address, (2) each
telephone number to be covered by the order to change
the subscriber's telephone company, (3) a statement
that the subscriber intends to change from his or
her current telephone company to this new company,
(4) a statement that the subscriber designates this
new carrier to act as the agent for this change, and
(5) a statement that the subscriber understands that
there may be a charge for this change. It must also
be separate from any promotional material - like prizes,
contests, and forms - that come with it.

The LOA provided by the carrier must be limited
strictly to authorizing a change in telephone carrier,
and it must be clearly identified as an LOA authorizing
the change. The LOA must be written in clear language,
and the print must be of sufficient size and readable
style, generally comparable in type style and size
to any promotional materials, and must make clear
to the consumer that the document, when signed,
would change his or her telephone carrier.

Only the name of the telephone carrier that will
set the consumer's rates can appear on the letter
of authorization. The LOA must also contain full
translations if it uses more than one language.

NOTE: Advertising promotions
that use checks can incorporate an LOA but must
meet specific guidelines. A check must contain the
necessary information to make it a negotiable instrument
and shall not contain any other promotional language
or material. The carrier must place the required
LOA language near the signature line on the back
of the check. In addition, the carrier must print
on the front of the check, in easily readable, bold-faced
type, a notice that the consumer’s signature
will authorize a change in his or her telephone
carrier.

Provide a toll-free number that the consumer can
call to confirm the order to switch telephone companies.

Have an independent third party verify the customer's
authorization to switch.

If you feel that you have been slammed, call the slamming
carrier and tell them that you want the problem fixed.
If you have not paid them, tell them that you will not
pay for the first 30 days of service. Call the authorized
company (local or long distance) to inform them of the
slam. Tell them that you want to be reinstated to the
same calling plan you had before the slam.

You may also file a complaint with the Consumer Affairs
Division. If we determine that your long distance service
was changed without your authorization and you have
not paid the bill of the carrier that slammed you, you
do not have to pay anyone for long distance service
for the first 30 days after being slammed. This means
you do not have to pay either your authorized telephone
company (the company you actually chose to provide service)
or the slamming company. You must pay any charges for
service beyond 30 days to your authorized company, but
at that company’s rates, not the slammer’s
rates. If you have paid your phone bill and then discover
that you have been slammed, the slamming company must
pay your authorized company 150% of the charges it received
from you. Out of this amount, your authorized company
will then reimburse you 50% of the charges you paid
to the slammer. For example, if you were charged $100
by the slamming company, that company will have to give
your authorized company $150, and you will receive $50
as a reimbursement.

How can you avoid being slammed? Be
a smart consumer.

Always examine your phone bill immediately and
thoroughly.

Be aware of the ways in which companies are legally
permitted to change your telephone service. The New
Hampshire Public Utilities Commission requires carriers
to obtain your clear permission before such a change.

A carrier may also solicit your telephone business
over the phone or electronically. Carriers must then
verify your authorization by asking you to confirm
your order by some means, such as calling a toll-free
number used exclusively for this purpose. A carrier
may also employ an independent third party to verify
your request to change telephone carriers.